Ethereum Goes Deflationary: Supply Drops by 66,000 ETH in 2023

In a groundbreaking move for the world of cryptocurrency, Ethereum’s supply has diminished by a whopping 66,000 ETH in the year 2023, as reported by the market intelligence platform IntoTheBlock on March 18. This substantial reduction in supply is attributed to Ethereum’s transition to proof-of-stake (PoS) consensus, referred to as the “Merge,” which occurred in September of the previous year. The new consensus mechanism leads to the burning of a fraction of ETH transaction fees, causing Ethereum to become deflationary. The currency’s deflationary nature is excellent news for digital asset enthusiasts seeking scarce digital assets, as deflationary currencies experience a decrease in supply over time, as opposed to inflationary currencies that increase in supply over time.

It is worth noting that the highly anticipated Shanghai-Capella upgrade, also known as the Shapella upgrade, is set to go live on April 12, 2023, adding to the anticipation in the cryptocurrency community. This upgrade is significant, as it introduces validator staking withdrawals to the main network, a feature that was excluded during Ethereum’s shift to PoS consensus in September 2022, following the Merge upgrade.

As of this writing, Ethereum’s value is hovering around $1,816.52 per coin, with the asset’s price having increased by 26% in the last seven days.

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